Investor Relations

Business Outline

RAKUS is the provider of cloud services which improve business efficiency of small and medium-sized enterprises. There are approximately four million SMEs in Japan. But their business management resources, such as budget and personnel, are limited compared to big companies. In addition, many SMEs don’t have dedicated in-house IT system specialists. Therefore, they are behind in introducing IT and improving operational efficiency. RAKUS has contributed to SMEs’ growth by providing user-friendly cloud services which SMEs can easily adopt. We also dispatch the IT engineers we have nurtured to those SMEs which have a shortage of IT specialists and help them flourish.

Message from the President

Message from the President

RAKUS CO., LTD. has challenged itself to achieve 30% CAGR in both revenues and net income over the next three years compared to the level of March 2018. We grew sales by 36.4% in the first target year, March 2019. Topline growth is a prerequisite to increase profits. In this sense, we got off to a good start.

The whole of society in Japan is moving toward shorter working hours through work-style reforms at the moment. On the other hand, the labor population is declining due to an ageing society with fewer children. This means that corporations need to reduce working hours despite having a smaller labor force. IT is an important means for them to resolve these two conflicting issues.

Around the world, there is a trend toward digitization in all areas due to an expanded use of the internet and better performance of computers. Digital transformation, which makes life easier, also urges corporations to use IT more. External factors such as work-style reforms, an ageing society with fewer children and digital transformation are benefits for RAKUS’s services. We are determined to seize such opportunities and to invest as much as possible this fiscal year to have our services prevail. What we mean by investment is hiring more people and increasing advertising costs. We have been comparatively more successful in hiring given that many companies are struggling with recruitment.

Our long-term goal is to be a company representing Japan, meaning we aim to be one of the top 100 listed companies in Japan. This will not be easy and it may take time. But we believe that we can achieve the goal if we continue to grow every year. The first test we need to clear to achieve this long-term goal is to have 30% CAGR in revenues and net income over the next three years. We are determined to make our utmost effort throughout this fiscal year so that we can set another target for the next stage after achieving the 30% CAGR goal in March 2021.

We are still a small company. But we sincerely hope that shareholders will support us, sharing in our long-term perspective.

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